Western Forest Products (TSX:WEF) ROCE %

: -10.00% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Western Forest Products's annualized ROCE % for the quarter that ended in Dec. 2023 was -10.00%.

Western Forest Products ROCE % Historical Data

The historical data trend for Western Forest Products's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Western Forest Products Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

-7.76

7.67

35.86

11.05

-11.09

Western Forest Products Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																-11.50	-8.99	-12.65	-13.11	-10.00

Western Forest Products ROCE % Calculation

Western Forest Products's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-88.8	/	( ( (932.8 - 125.8)	+	(915.4 - 121) )	/ 2 )
	=	-88.8	/	( (807	+	794.4)	/ 2 )
	=	-88.8	/	800.7
	=	-11.09 %

Western Forest Products's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-79.2	/	( ( (893.5 - 103.3)	+	(915.4 - 121) )	/ 2 )
	=	-79.2	/	( ( 790.2	+	794.4 )	/ 2 )
	=	-79.2	/	792.3
	=	-10.00 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Western Forest Products (TSX:WEF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Western Forest Products ROCE % Related Terms

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Western Forest Products (TSX:WEF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Western Forest Products Inc (TSX:WEF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WFSTF:USA NWF:Germany

Address

1055 West Georgia Street, Suite 800, P.O. Box 11122, Royal Centre Building, Vancouver, BC, CAN, V6E 3P3

Website

https://www.westernforest.com

Western Forest Products Inc is a Canada-based softwood forest products company. The company's principal business activities include timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value-added lumber remanufacturing. Its operating business segment comprises Timber harvesting, Log sales, and Lumber manufacturing and sales. The firm purchases and harvests logs which are then manufactured into lumber products at its sawmills, or sold. Canada and the United States, represent the company's large markets and contribute the vast majority of its total revenue.

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